In a bold move to sidestep punitive tariffs and meet surging European demand, Volvo has launched production of its compact EX30 electric SUV at its Ghent, Belgium factory, a strategic shift from its sole manufacturing hub in Zhangjiakou, China. Announced by Volvo, this €200 million ($213 million) investment fortifies the brand’s foothold in Europe, where the EX30 ranked as the 13th best-selling EV in Q1 2025, outpacing rivals like the Audi Q4 E-tron and Mercedes-Benz EQA.

A Tariff-Driven Transformation

The decision to localize EX30 production in Ghent, initiated in October 2023, gained urgency when the European Union imposed steep tariffs on Chinese-built EVs in 2024. These measures targeted models like the EX30, threatening Volvo’s competitiveness in its core market. By redirecting Belgian-built EX30s to EU customers and reserving Chinese-built units for tariff-free regions like the UK and Southeast Asia, Volvo has crafted a nimble supply chain. “We’ll start [EX30] production at our Ghent facility in Belgium in the first half of next year and then ramp up through the gears,” former CEO Jim Rowan declared in 2023, emphasizing the agility this dual-production strategy affords.

Volvo Ex30’S European Pivot: Ghent Production Shields Suv From Tariffs, Boosts Ev Resilience

Engineering Europe’s Electric Future

The Ghent factory, already home to the electric EC40 and EX40, as well as the XC40 and V60 hybrids, underwent a $213 million overhaul to accommodate the EX30. This included a new assembly line, 600 advanced robots, and a dedicated battery pack production facility. Spanning 1.24 million square feet, the upgraded plant now serves as Volvo’s European EV epicenter, blending cutting-edge automation with sustainable manufacturing. Francesca Gamboni, Volvo’s chief manufacturing and supply chain officer, underscored the EX30’s pivotal role: “The EX30 is crucial for the brand’s position in Europe,” she said, adding that production flexibility “contributes to our resilience.”

Navigating U.S. Uncertainties

While Volvo initially planned to introduce the EX30 to the U.S. post-2025, President Donald Trump’s 25% tariff on all foreign-built vehicles has clouded this timeline. With a starting price of approximately $35,000 in Europe, the EX30’s affordability could be jeopardered by added costs, potentially delaying its stateside debut. For American EV enthusiasts, this underscores the ripple effects of global trade policies on access to innovative, efficient vehicles like the EX30, which boasts a 275-mile range and a 0-60 mph sprint in 5.1 seconds.

EVXL’s Take

Volvo’s pivot to Ghent isn’t just a logistical win—it’s a masterclass in resilience that should resonate with EV owners and enthusiasts. By shielding the EX30 from tariffs, Volvo ensures European drivers can access this sleek, tech-packed SUV without inflated costs, preserving its edge in a crowded market. Yet, the U.S. delay stings; it’s a reminder that trade wars can stall progress for eco-conscious drivers craving practical, high-performance EVs. With its Scandinavian knack for blending form and function, Volvo’s EX30 saga proves that adaptability is the horsepower of tomorrow’s auto industry. Still, we can’t help but wonder: will American roads miss out on this electric gem, or will Volvo find another clever workaround?